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Regional Learning Session on Sustainable and Inclusive Marketing Arrangements Towards I ncreasing Farmers’ Market Power 9-11 May 2013 Manila. Vedini Harishchandra Southeast Asia Department Asian Development Bank. Importance of Agriculture Sector Growth in ASEAN .

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vedini harishchandra southeast asia department asian development bank

Regional Learning Session on Sustainable and Inclusive Marketing Arrangements Towards Increasing Farmers’ Market Power9-11 May 2013Manila

Vedini Harishchandra

Southeast Asia Department

Asian Development Bank

importance of agriculture sector growth in asean

Importance of Agriculture Sector Growth in ASEAN

Source: Asian Development Bank Key Indicators 2011, Asian Development Outlook 2012, ADB, FAO

smallholder access to markets challenges
Smallholder Access to Markets: Challenges
  • Lack of policy, regulatory support and institutional framework
  • Poor provision of access to credit
  • Inadequate provision of rural infrastructure that reduces postharvest losses and transport costs, and shortens transit time, while increasing overall rural mobility
  • Lack of access to value-responsive markets
  • Lack of access to agricultural information and market data
  • High transaction costs
  • Lack of inclusion of smallholder farmer groups into value chains
  • Lack of opportunities for increased private sector engagement
agriculture sector performance enhancing priorities
Agriculture Sector Performance Enhancing Priorities

Source: ADB-RSDD

Productivity - Increase production and productivity of food commodities in a sustainable way

Connectivity - Improve linkages between food producers and consumers; input and output markets

Resilience - Enhance the resilience of social and ecological systems against the effects of climate change

adb s overall agriculture and natural resources priorities
ADB’s overall Agriculture and Natural Resources Priorities
  • Pro-poor investments focused on rural infrastructure, sustainability, climate resilience, and inclusive economic growth, to achieve the objective of poverty reduction.
  • Some of ADB’s SE Asia investments are in:
  • Rural infrastructure and connectivity
  • Environment and natural resources management
  • Irrigation efficiency and water resources management
  • Public-private partnership
  • Regional cooperation and integration
example
Example…
  • Infrastructure for Rural Productivity Enhancement Sector Project (INFRES) – Philippines
  • INFRES Project aimed to increase agriculture productivity by improving rural infrastructure such as farm to market roads, communal irrigation systems and potable water systems.
  • Household Income: Average household income grew by 49%, on-farm income grew by 60% and non-farm income by 35%.
  • Agriculture Productivity: The rice yield increased from 3.28mt/ha to 3.53mt/ha and corn from 1.96mt/ha to 2.42mt/ha.
  • Distribution of Gains: INFRES contributed to reduction in poverty by 24.44 percentage points; exceeding the target by 11 percentage points.
  • Source: Benefit and Impact Assessment of the Infrastructure for Rural Productivity Enhancement Sector (INFRES) Project
sector investments
Sector Investments
  • Loans and Grants as of 2012
  • Agriculture and natural resources sector:
  • Sovereign Projects - 21,453 million
  • Grant Projects – 1,081 million
  • Technical Assistance -776 million
  • Regional technical assistance – 247 million
agribusiness development assistance for smallholders in mindanao
Agribusiness Development Assistance for Smallholders in Mindanao
  • Objective: The Project’s long-term objectiveis an improvement of the income of smallholders in Mindanao.
  • Funding: 8.8million
  • PrimaryBeneficiaries : The project will benefit about 2,000 smallholders (at least 50% will be women) by improving their access to capacity building, technical training, finance, infrastructure and other support
  • ProjectComponents:
  • 1 Support for start-up agribusinesses for smallholders:Thiscomponent will provide management, technical and financial support for smallholders in three provinces of Mindanao.
  • 2 Establish an apex institution for smallholders:Thegrant implementation unit (GIU), will study viable options to establish an apex institution to support smallholders during and after the project.
  • 3 Prepare feasibility studies for increasing agribusiness development for smallholders: This component will explore ways to increase the number of smallholders with access to technical, management, and financial services to improve their livelihoods from agribusinesses.
conclusions
Conclusions
  • Focus:
  • Inclusiveness
  • Sustainability
  • Green agriculture infrastructure
  • KeyConstraints:
  • Lack of enabling environment to attract needed investments in agriculture
  • Poor policy, legal, regulatory and institutional framework to support samllholder farmers
  • Poor delivery and absorption capacity
  • Inadequate support for agribusiness development
  • Insufficient extension support and infrastructure
  • Response:
  • Policy/program support
  • Productive Infrastructure/enhanced connectivity
  • Climate change resilience